Animoca Brands has reported significant financial growth in 2024, with its latest unaudited figures revealing a $314 million annual revenue increase, marking a steady rise from the $280 million recorded in 2023. 

Despite ongoing challenges in the broader blockchain sector, Animoca Brands saw a 167% year-over-year (YoY) surge in Q4 bookings, rising to $108 million from $40 million in the previous year. 

According to a press release shared with The Byteline, this boost was driven largely by Digital Asset Advisory (DAA) services, which alone generated $57 million in Q4 and accounted for a substantial portion of the company’s total $165 million annual earnings from this segment.‍

Shifting Strategies and Cost Reductions

While revenue soared, Animoca Brands also took decisive steps to cut costs and optimize operations. The company reported a 12% decrease in annual operating expenses, reducing spending from $246 million in 2023 to $217 million in 2024. 

The fourth quarter alone saw a 15% drop in expenses, indicating that cost-cutting strategies implemented in the latter half of 2023 have begun to show results.

One of the key factors in reducing operational costs was the integration of AI tools across Animoca’s subsidiaries, streamlining processes and reducing inefficiencies. This move comes at a time when Web3 companies are increasingly turning to AI-driven solutions to improve scalability and manage risks in the volatile crypto market.‍

Expanding Digital Asset Holdings

The company ended the year with $293 million in cash and stablecoins, alongside $538 million in digital assets, which includes $356 million in liquid holdings and $182 million in locked-up assets. 

Animoca Brands continues to hold major cryptocurrencies such as Ethereum (ETH), Bitcoin (BTC), and ApeCoin (APE) as part of its portfolio strategy.

Perhaps more striking is the company’s off-balance sheet token reserves, valued at $2.9 billion. These reserves, which include assets like SAND, EDU, MOCA, and GMEE, are issued by Animoca’s majority-owned Web3 projects.

Though not formally recorded as assets under traditional accounting standards, they represent a substantial economic stake in the broader digital ecosystem.‍

Web3 Business Performance and Investment Shifts

Animoca Brands has steadily diversified its revenue streams, with $110 million generated from its Web3 operating businesses, which include blockchain-based in-app purchases and game-related sales. This segment saw major contributions from The Sandbox, Moca Network, and Open Campus, among other projects.

The company also reported $39 million in realized investment gains through Animoca Ventures, despite an overall decline in the valuation of its private investment holdings. 

As of the end of 2024, Animoca's private equity and SAFT (Simple Agreement for Future Tokens) investments stood at $564 million, a drop from $690 million the previous year. The decline is largely attributed to token launches that converted holdings into liquid assets and equity sales in private companies.